Your business is growing and operations during 2021 and into 2022 have been quite successful. Your business has purchased more equipment. It has also added another revenue stream: selling juicing machines to the public. You have a friend at Dillan Manufacturing that has agreed to sell you high-quality juicing machines at a wholesale price so you can sell them to the public at a profit.

It is now one year later, May 31, 2022 and you have been provided the trial balance as April 30, 2022

2. The following transactions happen during the month of May 2022:

May 1 You paid the April interest owing on the bank loan. You issued cheque #317.

2 You collected $990 cash from a customer, on account, to whom you had previously sold a juicing machine.

9 You paid the April 30 balance of accounts payable. You issued cheque #318.

11 You purchased, on account, 3 more juicing machines for $780 each (excluding freight).

The purchase invoice also included a $51 freight charge for the cost of transporting the machines from the vendor to your place. NOTE: Since you will use the FIFO cost-flow assumption, you should make a "FIFO Inventory Record" (See textbook Illustration 6.5) for your Juicing Machine inventory.

12 You buy $202 of supplies such as protein powder, cups, straws, and fresh fruit and vegetables, on account.

14 You sold, on account, two juicing machines to Bill's Fitness for $990 each. You will use the FIFO method of recording inventory transactions.

21 You make and deliver a batch of smoothies to Fred's Yoga Studio and you issue a sales invoice of $365. The invoice is payable in 30 days.

23 You paid the amount owing on the May 11 purchase. You issued cheque #319.

27 You purchased, on account, 2 more juicing machines for $790 each (excluding freight). The purchase invoice also included a $40 freight charge for the cost of transporting the machines from the vendor to your place.

28 You paid $85 cash for repairs done to some equipment. You issued cheque #320.

29 You sold, on account, two juicing machines to the owners of City Contemporary Dance Studio (Remember that freight is part of inventory). The selling price of each machine was $990. 30 You received a $103 e-bill for your business cell phone service for May and you paid it immediately. You issued cheque #321.

31 You collected $1980 cash from a customer whom you had, on May 14, sold two juicing machines.

31 You paid a casual worker $73 cash for wages for work done in May. You issued cheque #322.

INSTRUCTIONS: you have to answer the following questions by using the above data.

1. Prepare the FIFO inventory record to determine the cost of goods sold and ending inventory resulting from the inventory purchases and sales noted in the May transactions.

Note: • You will need the COGS to complete the JE for the May 14th and 29th sales. • Use the Illustration 6.5 in the textbook to assist you.

2. Prepare the journal entries for the transactions that occurred in May 2022. • For transactions affecting 'Cash', include the cheque number in the explanation.

3. Post the journal entries to the general ledger.

4. Prepare an unadjusted trial balance.

( please let me know if you need any additional data from the other parts of this project asap because i really need this answer really urgent)
 

Transcribed Image Text:

1 Okanagan 11:18 PM Wed Aug 4 * © 89% A mymoodle.okanagan.bc.ca PART 5 1 of 4 INFORMATION: 1. Trial balance as April 30, 2022: Name of Your Business Adjusted trial balance April 30, 2022 The $2,250 inventory balance is comprised of 3 110 Cash 5,037 juicing machines that cost 130 Accounts receivable 2,150 $750 each. The note 135 Inventory 2,250 payable is to the bank and 140 Supplies 118 interest is paid on the 1st day 160 Equipment 4,650 of each month. You had paid 161 Accumulated depreciation 1,540 off the loan to your mother 210 Accounts payable 63 230 Unearned revenue 652 Wages payable Interest payable 240 245 21 260 Notes payable 5,000 310 ,capital 9,562 320 drawings 5,778 410 Sales revenue 12,600 505 Cost of goods sold 6,540 508 Advertising expense 425 515 Depreciation expense 1,410 527 Interest expense 256 540 Repairs expense 107 Supplies expense Telephone expense 550 279 563 294 570 Wages expense 144 29,438 29,438 1 Okanagan 11:18 PM Wed Aug 4 * © 89% A mymoodle.okanagan.bc.ca PART 5 1 of 4 INFORMATION: 1. Trial balance as April 30, 2022: Name of Your Business Adjusted trial balance April 30, 2022 The $2,250 inventory balance is comprised of 3 110 Cash 5,037 juicing machines that cost 130 Accounts receivable 2,150 $750 each. The note 135 Inventory 2,250 payable is to the bank and 140 Supplies 118 interest is paid on the 1st day 160 Equipment 4,650 of each month. You had paid 161 Accumulated depreciation 1,540 off the loan to your mother 210 Accounts payable 63 230 Unearned revenue 652 Wages payable Interest payable 240 245 21 260 Notes payable 5,000 310 ,capital 9,562 320 drawings 5,778 410 Sales revenue 12,600 505 Cost of goods sold 6,540 508 Advertising expense 425 515 Depreciation expense 1,410 527 Interest expense 256 540 Repairs expense 107 Supplies expense Telephone expense 550 279 563 294 570 Wages expense 144 29,438 29,438

Answer rating: 100% (QA)

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